What To Look For When Buying A Fixer-Upper

Buying a house isn’t just a big commitment long-term, it is a large purchase that
takes a lot of planning, research and budgeting. The house you end up living in
could be the one home you live in forever, so this isn’t a decision that you should
take lightly. A new home can take a lot of work, and if you buy an old home that’s
had a few previous owners or buy a home that has been newly built, you may not
need to do a lot of work. However, if you buy a house that is rather run down and
shabby, you’ve got a fixer-upper on your hands.

Before you start looking for a house, before you start comparing mortgage brokers
like Altrua Financial with others, you need to research home inspectors. Old houses
require a more in-depth inspection compared to newer ones, so you need a
professional who knows what they are doing. Those who inspect newer houses
most of the time tend to think that everything in an older home needs to be replaced
and refreshed. Get as many references for an inspector as possible and start
making a list of things you need to look for in a fixer-upper.

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Generally, you have to ensure that it will stand up and be structurally sound as a
very basic. You also have to make sure that your roof will keep you dry and not leak.
You then have to look to the basement to know if the foundations are intact. The
house you look at should have good electrics and plumbing, and you should get
an idea on how much the doors and windows should cost to install or replace
should you need to. The rooms should be of a good size that you want, and be
planned out properly so that you are happy. It’s fun to buy a fixer-upper home if
you have the money to make it the beauty that it should be. Most houses that you
fix up tend to have original features that can be restored.

The money that you would put into a home that requires a lot of work can seem
like a lot, but remember that the initial buying price is often cheaper than other homes.
You should consider the fact that you will be living in a building site should you choose
to move in before all the work is done. It can be more economical to live on the
premises you have just bought, but it isn’t always easy to do it! When you search
for your new fixer-upper, you need to make sure it’s in the neighbourhood and the
size that you want for your family. There is a flipside to buying a fixer upper, though,
especially if you plan to fix up and sell on. Using the money from sale, you could do
the same thing again – buy and sell on. There’s a chance for property development
and you could start your own mini empire!

Misusing Money: Why It Pays to Be Frugal at All Stages of Your Business

Warren Buffett is one of the most successful, happiest and wealthiest entrepreneurs on
the planet today. With a net worth of around $84.3 billion USD, it’s hard to even imagine
the scale of how rich this hardened investor and philanthropist is. However, Warren Buffett
has a secret that may surprise (or make complete sense) to people; he’s frugal. Just to
give you an example, here are some of his silliest quirks:

• He does not have a computer on his desk at work.
• Nor does he have a phone on his desk.
• He’s only sent a single email in his entire life.
• He’s lived in the same home he bought back in 1958, currently valued at only $260,000.
• He eats a breakfast of Oreos or McDonalds every day, depending on availability.
• He drinks at least 5 cans of Coca-Cola every single day.

Perhaps his unhealthy diet is the secret to his success. Maybe his resistance to technology
has made him become one of the most successful entrepreneurs in the world today. Perhaps
it’s something different, or maybe it’s just a combination of everything that Buffett does
which gives him the level of success that he has now.

One thing’s for sure, many of those perks point to one word; frugality.

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Learning From the Master of Frugality Himself

We can learn a lot from how Buffett treats his business and his life, so let’s break
down each of his quirks and examine how they relate to frugal business operations.

Relying Too Heavily on Technology

One of the biggest money sinks in business today is technology. Whether it’s purchasing
too many computers that you don’t need or investing in technology when it’s not needed,
it can create a huge dent in our wallet. Although Buffett himself shy away from technology,
it doesn’t mean that his businesses and his practice don’t embrace technology.

What Buffett’s quirk here can tell us is that you don’t need technology to be a successful
business. In fact, it can add so much extra worry, expense and bother that it can actually
become detrimental to your business. In other words, make sure you know how to actually
operate a business and run it in a traditional way before you rely on technology for everything.
That’s not to say that businesses should not rely on technology; it just means that businesses
should think of technology as an extension of their business practices and methods.

Think of it this way; if your business doesn’t know how to handle customer service correctly,
then what is the point of having cloud software dedicated to sorting and managing customer
feedback? Your employees need to understand what it means to engage with customers
before you use technology to assist in it. Similarly, it’s no good trying to go paperless if you
still heavily rely on paper records and documents. Depending on your business, paper
documents might even be preferred. Making swift and drastic changes to your business is
not beneficial to your company, and relying on technology for everything from the start is
suicide. Learn how to operate your business the traditional way before you extend it with
the help of technology and you’ll have a much higher chance to succeed.

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If It’s Not Broken, Don’t Fix It

Warren Buffett has not changed his home for over 50 years. The reason? Because he doesn’t
need to. The same type of logic can be applied to businesses and it’s often interpreted like
this; don’t change what isn’t broken. There are some people that would argue change is
good for business, and this is usually good advice. However, there are also times where
changing how your business works can actually break it and cause more chaos than you
might be able to handle.

There’s a well-defined line between change for the sake of change and change that can
actually be beneficial to your company. For starters, make sure the thing you’re changing
is actually something that needs to be changed. For example, if you’re growing as a business,
then “change” can be interpreted as moving into a bigger office. This is crucial because you’ll
need more space to house more employees and equipment, so it’s the type of change that
is almost certainly beneficial.

A bad example of change is, as explained in the previous section, completely overhauling
something in your company. While change is desirable, swapping the way your employees
work in a single day without trialling a new system or machine is suicide for your business.
Your staff need to learn how to adjust to the different workflow and they also need to
understand the flaws that they could encounter.

If you’re able to get a loan qualification for the purpose of expanding your business, then
focus on making changes to your business that are actually needed. Running out of space
in your office? Invest in an expansion, moving to a larger office or renovating your office.
Found a bottleneck in your workflow? Invest in solutions to remove that bottleneck. Don’t
invest your money poorly by doing so blindly and without making proper decisions backed
by advice from senior members of your staff.

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Conclusion

The way Warren Buffett lives his life is full of hidden lessons that we entrepreneurs can learn from. By holding on to our money and being frugal, it’s possible to be successful and continue growing our companies without wasting a single penny. Frugality isn’t just for the home or for your lifestyle–it can also be a way to operate your business. In short, don’t invest in technology if you aren’t certain that it can actually become a beneficial part of your business. In addition, don’t bother with making changes to your business if they aren’t due. Making a change for the sake of doing things differently or to use your capital is a terrible idea, and you should always analyse the risks involved with making drastic changes to your business before you invest.

Time Is More Valuable Than Money

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Just read the title of this blog again. Now think about all the financial habits you have
promised you were going to adopt but have kept putting off. We know it’s hard to get
everything done because, well, quite simply, life is one hectic mess of bits, bobs, tasks,
chores and tidbits that all need attention, but the more you put off being money-savvy
the less impact your efforts will have. That’s why you should get the red pen out and start
re-organising your priority list, putting financial health at the top.

Whether it is starting a monthly budget or putting money away for your retirement, the
sooner you act the more benefits you will reap. So, to prevent ourselves from becoming
somewhat hypocritical, let’s crack on with the money habits you need to adopt as a matter
of urgency. Trust us, these will all help you lay the foundation for a much healthier future.

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1. Nothing Beats A Budget

You have been reading about the importance of a budget for six and a half years, and yet
here you are, still trying to get by without one, guessing your way through each month,
not totally sure of your financial position. Look, the reason why every expert emphasises
the importance of a budget is no one ever went bankrupt by spending less than they make.
So, know what you are making, know what you are spending and know what you can start
doing with the rest. Simple.

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2. You Can’t Celebrate Without Goals

Sticking to a budget is super-hard when the temptation of buying the funner things has
something to say (as it always does!), which is why it is so important to set financial goals.
It is having a reason to hold back and seeing the importance of your sacrifice. Of course,
doing this on your own can be tricky, which is why we recommend you employ a
professional service, someone like Blueprint Wealth financial planning, for help. It
could be that your goal is a deposit for a house, paying down your nasty credit card
debt or enjoying a more cushty retirement. By having this goal, you will have a reason
to put a little bit aside each month. Trust us, this feeling of succeeding in your ambitions
is addictive, and it could spiral into bigger goals.

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3. Curveballs Always Come At Bad Times

Have you noticed how life loves to throw you a curveball when you least want it? It’s like the universe suffers from a harsh case of epicaricacy and you are the victim. Your car breaks down the week before Christmas. You lose your job on your birthday. You get meningitis from totally out of the blue just as you are embarking on a startup attempt. These are all unavoidable things and all you can do is cushion the impact, which is where an emergency fund comes in. Life can be mean, but you can be prepared. Who knows, this emergency cash could be the thing that saves you from more debt or the thing that lets you ride out a once-upon-a-time-disaster as little more than a speed bump.

Are You Ready For Your Retirement?

No matter how far away you might be from retirement, you want to make sure that you
are going to be as prepared for it as you possibly can be, as this will make that period
of your life all the more easy and smooth-flowing. But not everyone does everything
they can to get themselves truly ready for retirement, and if you feel that you could be
doing more then you are probably right. The trick there is then in knowing what you can
do and what you cannot do in order to get yourself truly ready - have you done
everything that will benefit you at that time in your life? Let’s take a look at some of the
things you will want to have considered.

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Paying Into The Pension

The first and perhaps most obvious part of all this is to make sure that you are actually
paying into your pension. If you have not been paying in regularly and handsomely,
then it is less likely you will see the numbers you want to see upon retirement.
Fortunately, it is never too late to start, and if you think that you need to be paying in
a little more then it might be time to think about doing that now. The more you pay in,
and the longer it has to sit there and gain interest, the more you will have when it comes
to retiring. Make sure you are following this simple process if you want to have the money
you will need when it comes to retirement. You will be glad you did.

Managing Your Funds

Whatever you do manage to save up, and whatever other funds you have bought into,
you will need to make sure that you find a good way to manage those funds. When it
comes to your pension, you will find that it is beneficial to have an accountant once in
a while to take you through what you have got and what your options are going forward.
And if you have any other kind of funds such as an SMSF, then you might want to try
and find some specialized help for that too. Using something like Blueprint Wealth
SMSF services will ensure that you are on the best path towards taking better care
of your finances when you retire - and you might decide to take some of it out early
too, in which case you will definitely want this assistance.

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Saving

Even after your pension and whatever other funds you might have, you will probably need to remain sensible about what you do with your money. More often than not, this will mean that you need to remember how to save your money as best as possible, and that will be a real priority when it comes time to retire. Learning to save money will put you in the best possible position for your retirement, and you will be very glad that you did that once it comes to it.

The Helping Hands Property Investors Need

Are you looking to make your way in the lucrative world of investing in, improving, building,
and developing property? There’s a lot you need to know and plenty of responsibility you
have to be ready to take. But that doesn’t mean you have to go it alone. Rather, depending
on what kind of investments you’re hoping to make, having the rights friends can be
essential. Here are a few you should consider making.

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The development navigators

If you’re developing a property, whether for yourself or for a client, it’s important to know
all the legal implications that come with it. Planning permission, disputed land ownership,
operating in different markets and the difference between private and public sector
development all requires specific knowledge. It might be more than any one person
can handle, so planning consultants can be a huge benefit to the investor. They can
help you navigate the red tape, stay compliant, and free you up to focus on the
development itself.

Someone to learn from

That’s not to stay that you shouldn’t have expertise of your own. A certain degree of
self-learning and direction is essential, but if you need to understand a new market
and how to make partnerships with clients, agencies, and others within it, a more
experienced hand can be a lot of help. Find a property investment mentor that’s
willing to take you under their wing. The solicitors involved in the purchase, sale
and development of properties are a good place to start. However, you can also pay
for more focused training and mentorship from many of the experienced investors
selling their expertise online. Just make sure they have real credentials and experience
to speak for them, as there are too many self-professed “gurus” out there.

Work you can rely on

Having a contact book full of different contractors with different skills is essential.
Sometimes, you can make a nice return on investment by just waiting for the market
to shift or buying property in an area that’s about to experience a serious upgrade.
But in most cases, you need to put the work in and finding the right contractors and
developing long-term relationships with them is essential to getting reliable work done
at a lower cost.

An eye on your tenants

If you’re renting out a property, you can decide how hands-on or hands-off you want to
be. If you prefer, an agency can handle most of the essentials at an added cost. But
even if you are handling your own rental properties, it’s a good idea to avoid the worst
tenants by hiring services that provide background checks. They can find problematic
behavior experienced by other landlords, credit issues, and other warning signs that
your tenant might not be the golden child they profess to be.

It is true that if you’re willing to handle more by yourself that you can save on the costs
that hiring a professional might entail. But you can also get yourself stuck with projects
you don’t have the practical skills to handle or even undermined by regulations and
limitations you’re unaware of. It’s worth having friends when investing in property.